2.Terms.Types of Life Policies

Question 1

Attained age

Answer 1

the insured’s age at the time the policy is issued or renewed

Question 2

Cash value

Answer 2

a policy’s savings element or living benefit
Face amount — the amount of benefit stated in the life insurance policy

Question 3

Deferred

Answer 3

withheld or postponed until a specified time or event in the future

Question 4

Endow

Answer 4

the cash value of a whole life policy has reached the contractual face amount

Question 5

Level premium

Answer 5

the premium that does not change throughout the life of a policy

Question 6

Liquidation of an estate

Answer 6

converting a person’s net worth into a cash flow

Question 7

Nonforfeiture values

Answer 7

benefits in a life insurance policy that the policyowner cannot lose even
if the policy is surrendered or lapses

Question 8

Policy maturity

Answer 8

in life policies, the time when the face value is paid out

Question 9

Securities

Answer 9

financial instruments that may trade for value (for example, stocks, bonds, options)